This Company Owned By Conglomerate Hary Tanoesoedibjo Cancels Private Placement Of 1.14 Billion Shares, Why?

JAKARTA - The company owned by the conglomerate Hary Tanoesoedibjo, PT MNC Energy Investments Tbk (IATA) has canceled its plan to increase capital without pre-emptive rights (non-HMETD) or private placement. Initially, the corporate action plan was one of the agenda items in the GMS.

"The company's additional capital of 1.14 billion shares through the mechanism of adding capital without pre-emptive rights will not be carried out," said Wishnu Handoyono, Vice President Director of MNC Energy Investments in a written statement, quoted Tuesday, May 17.

However, Vishnu did not explain in more detail the reason for the cancellation. He only stated that it was related to Financial Services Authority Regulation (POJK) No. 14/POJK.04/2019.

Previously, MNC Energy Investments or IATA would make additional capital with preemptive rights (HMETD) or rights issue as well as private placement.

For the rights issue, IATA will issue 14.84 billion shares, accompanied by the issuance of 2.96 billion units of series I warrants. As for the private placement, IATA plans to issue 1.14 billion shares, or the equivalent of 10%.

Therefore, IATA will hold an extraordinary general meeting of shareholders (EGMS) on 18 May 2022. The EGMS will be held in conjunction with the annual general meeting of shareholders (AGMS).

To note, all funds obtained in the context of increasing capital with Pre-emptive Rights will be used for settlement of PT MNC Investama Tbk (BHIT) claim rights against the company based on the promissory note, issued by the company in the context of the takeover of PT Bhakti Coal Resources. And, the company's working capital.

Regarding the private placement, the company's management concluded that this PMTHMETD will provide benefits in the form of reserves for increasing the company's working capital.